| Company: | The Bancorp Inc, |
| Ticker Symbol: | TBBK |
| Class Period: | Apr-24-13 to Jun-10-14 |
| Date Filed: | Sep-2-14 |
| Lead Plaintiff Deadline: | Nov-1-14 |
| Court: | District of Delaware |
| Allegations: | |
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
The Bancorp, Inc. operates as the financial holding company for The Bancorp Bank, which provides various commercial, retail, and related banking products and services to small and mid-size businesses. The Company provides services in Philadelphia, Delaware, Chester, Montgomery, Bucks, and Lehigh counties in Pennsylvania; New Castle County in Delaware; and Mercer, Burlington, Camden, Ocean, and Cape May Counties in New Jersey.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company had under-reserved for loan losses due to adverse loans; (2) Bancorp's operations and credit practices were in violation of the Bank Secrecy Act ("BSA"); and (3) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On April 23, 2014, after the market close, Bancorp announced financial results for the first quarter of 2014, reporting that net income for the period decreased to $298,000, or fully diluted earnings per share of $.01, compared to net income of $7.4 million or $.20 per diluted share for the comparable period in 2013. According to Bancorp's Chief Executive Officer, the quarter was significantly impacted by an additional loan loss provision of $11.8 million principally related to "newly identified adversely classified loans".
On this news, Bancorp shares fell $2.76, or over 15%, to close at $15.84 on April 24, 2014, on unusually heavy trading volume.
On June 10, 2014, the Company filed a Form 8-K with the SEC, announcing that it had entered into a Stipulation and Consent to the Issuance of a Consent Order with the FDIC. The Order became effective on June 5, 2014, and requires the bank to correct the weaknesses in its Bank Secrecy Act Compliance Program.
On this news, shares of Bancorp fell $4.66, or over 28%, on extremely heavy volume, to close at $11.54 on June 11, 2014.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
